Question

1. Interpret the tables trend year by year comparing both company? Dividend Paid ABC Ltd 448,854.00...

1. Interpret the tables trend year by year comparing both company?

Dividend Paid

ABC Ltd

448,854.00

299,236.00

149,618.00

470,229.00

299,236.00

XYZ Ltd

374,800.00

420,229.00

405,829.00

468,743.00

529,600.00
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Answer #1

Trend of Dividend paid by ABC Ltd and XYZ Ltd

Five years data on dividend paid by two companies are given in the table. During this period, the dividend payment by ABC Ltd is highly fluctuating copared to XYZ Ltd. XYZ Ltd follows almost stable dividend policy during these five years.

During the first three years, the dividend payment by ABC Ltd showed considerable decline. But in the next year, ie fourth year the company's dividend aount increased. It may be because of the huge profits earned by the company during that year. As per the table, in the fifth year, the dividend again decreased.

But the dividend payment of XYZ Ltd is not highly fluctuating. That copany pays fair amount of dividend during these years.

The trend can be plotted on a graph as shown below:

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